Analysts predict the recent LA wildfires could result in a staggering financial impact of at least €50 billion on California’s economy.
Fires raging throughout California are estimated to cause damages and economic losses between $52 billion (approximately €50 billion) and $57 billion (around €55 billion), according to early data from AccuWeather Inc., a private forecasting firm.
“This wildfire is already one of the most devastating in California’s history,” noted Jonathan Porter, AccuWeather’s chief meteorologist, in a press release shared with Euronews Business on Thursday.
He further elaborated, “If additional properties are destroyed in the upcoming days, it could herald the worst wildfire in the state’s modern history based on the number of buildings affected and the overall economic impact.”
Tragically, at least five lives have been lost due to the fires, and authorities anticipate that this number may unfortunately rise.
Current reports indicate that more than 1,000 structures—primarily homes—have been claimed by the flames, and approximately 130,000 residents remain under evacuation orders. This figure is fluid, changing as new fires break out.
The most intense fires are occurring in areas from Santa Monica to Malibu, threatening some of the nation’s priciest real estate, where median home values exceed $2 million (around €1.94 million).
“Residents, their homes, and businesses face significant risks, and there are broader implications for tourism and public health due to smoke inhalation and damage in areas that have not yet been destroyed,” AccuWeather remarked. It is crucial to recognize that these figures are preliminary as the fires continue to expand, with several regions yet to report on damages, injuries, and other significant impacts.
The extent of this devastation implies a long and arduous recovery journey ahead, necessitating the community’s cohesive efforts and support from local authorities. Many Pacific Palisades residents have reported lacking property insurance; a direct consequence of insurers withdrawing coverage in these high-value, high-risk areas.
AccuWeather also warned that should these wildfires spread into densely populated neighborhoods, thousands more costly structures may be at risk, prompting a likely upward revision of the previously mentioned estimates for total damage and economic loss.
“We are facing a fast-moving, wind-driven wildfire that poses a severe threat to lives and causes catastrophic damage,” Porter stated. Experts predict that the overall damage and economic repercussions from the wildfires and related windstorms in Southern California could reach between $52 billion and $57 billion. “This is a catastrophic event. We are just beginning to understand the extent of this destruction. Strong winds are gusting between 70 and 100 mph, complicating fire crews’ efforts to combat these flames and contain the fires.”
Photo credit & article inspired by: Euronews
